Integra Gold's updated 2017 PEA on the Lamaque South Gold Project
highlights a doubled life of mine estimate, increased total ounces of 156%
and a reduction in total mine costs to CA$86/tonne.
In a Feb. 27 press release, Integra Gold
Corp.'s (ICG:TSX.V; ICGQF:OTCQX) announced an updated PEA for its 100%
owned Lamaque South Gold Project located in Quebec. A few positives from the
PEA included an increase in mine life from 4.5 years to 10.5 years, average
gold production projected at 123,000 ounces annually and a reduction in total
mining costs to C$86/tonne.
Integra President and CEO Stephen de Jong added that "this study
further demonstrates Lamaque's extremely rare positioning as a project in a
safe jurisdiction with high grades and high margins, with the potential to be
up and running in less than two years."
Supporting de Jong's optimistic statements was Tara Hassan, an analyst for
Raymond James. In the Raymond James Mar. 2 report, Hassan stated that
"the most significant positive changes over the previous study were
increases to throughput, annual production, and mineable resources."
Hassan highlighted that "Lamaque ranks well against Canadian producers.
. .and now, with the updated PEA, this is even truer. Comparing producing
projects with an average resource grade of greater than 2 g/t Au, Lamaque's new
production profile moves it up one spot to rank 9th, and its top
rank on costs is maintained. Integra's current valuation (0.66x NAV and
US$55/oz) also ranks it favorably against a group of developer peers (0.68x
NAV and US$61/oz)."
George Topping, an analyst with iA Securities, pointed out in a Mar. 2
report that "this PEA is a good step on the way to a full Feasibility
Study. We expect the total mineable resource to reach 3 Moz in 2018. We have
made adjustments to our model and maintain our Buy Rating."
Macquarie Research Analyst Michael Gray wrote in a Feb. 28 report that
"ICG is one of the most active junior exploration companies globally and
also in the developer stage with a robust +10yr mine life, Feb/17 UPEA, and
[an] underground bulk sample program underway in 3Q17 at its flagship
Lamaque."
Gray also pointed out that "in September 2014, ICG acquired the
permitted Sigma-Lamaque milling facility, which we think was a
'game-changing' transaction, reducing initial capital costs, and potentially
shortening the timeline to production . . .in the same transaction ICG also
acquired the historic Sigma and Lamaque mines." The Sigma and Lamaque
mines were later used for the Gold Rush Challenge event at the 2016 annual Prospectors
and Developers Association of Canada (PDAC) convention. This year at PDAC
Integra Gold teamed up with Goldcorp Inc. (G:TSX; GG:NYSE) and four top technology
companies�Microsoft, IBM, Accenture and Cisco�on a mining innovations event
called #DisruptMining.
Michael Gray believes these two events "reflects management's bold and
innovative approach to the discovery & development process and also
marketing."